RNFI - RNFI

📊 NSE: RNFI 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 12:25

💰 Financial Performance

Revenue Growth by Segment

Overall revenue grew 2.9% to INR 471.4 Cr in H1 FY26. Non-Forex revenue grew 6.7% to INR 220.7 Cr, while Forex revenue declined slightly by 0.2% to INR 250.7 Cr. Domestic Money Transfer (DMT) revenue saw a significant 49% HoH decline due to regulatory changes, dropping from INR 60 Cr to approximately INR 30 Cr.

Geographic Revenue Split

The company operates pan-India with a strategic focus on North India (Delhi) for new product launches and operational control before expanding to South India. Specific % split by region is not disclosed.

Profitability Margins

Gross Profit margin improved from 13% to 17% (INR 82.5 Cr). Net PAT margin improved from 1.9% to 3.1% overall, while Non-Forex PAT margin reached a healthy 6.5%, up from 4% YoY. The improvement is attributed to a shift toward higher-margin products and reduced depreciation.

EBITDA Margin

EBITDA margin improved from 4.2% to 6.1% (INR 28.6 Cr, up 47.4% YoY). Core profitability increased as the company compensated for low-margin DMT volume losses with high-margin alternate products.

Capital Expenditure

Planned tech infrastructure strengthening of INR 5.30 Cr and inorganic growth/acquisitions of INR 19.37 Cr. Historical desktop/server investment stands at INR 10.81 Cr. INR 25 Cr of IPO funds remain unutilized.

⚙️ Operational Drivers

Raw Materials

Bank API access fees, transaction processing costs, and agent commissions (Sahayak payouts) represent the primary cost of services, accounting for approximately 82.5% of total revenue.

Import Sources

Sourced domestically from Indian Universal Banks, Payments Banks, and BFSI partners.

Key Suppliers

Key partners include Universal Banks (for doorstep banking), Payments Banks (for BC services), and BookMyForex (for currency exchange services).

Capacity Expansion

Active sites increased by 18.8% in H1 FY26. Client base expanded from 5 in 2021 to 112 in 2026, with 18 new clients added in H1 FY26 alone.

Raw Material Costs

Cost of services represents 83% of revenue (INR 388.9 Cr in H1 FY26). Procurement strategy focuses on deep API integration to reduce partner dependency and improve margins.

Manufacturing Efficiency

Platform-based model allows for high scalability by 'plugging in' more corporates and banks without proportional cost increases.

Logistics & Distribution

Distribution is handled through a network of 'Sahayaks' (agents); ARPU was approximately INR 1400, though integration of Payworld temporarily lowered this average.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth will be driven by scaling the Forex business following the receipt of the AD-II license, expanding ReliAssure telemarketing and re-insurance broking, and rolling out a national doorstep banking program following a successful pilot with a universal bank.

Products & Services

Domestic Money Transfer (DMT), Forex cards, outward remittance, insurance policies (Life & General), and doorstep banking services.

Brand Portfolio

Relimoney, ReliAssure, Paysprint, Payworld.

New Products/Services

Relimoney Forex Platform, Sprint EXcrow, Sprint EXcode, and Insurance Telemarketing operations.

Market Expansion

Pan-India expansion with a focus on increasing agent productivity and revenue per outlet.

Strategic Alliances

Strategic pilot with a universal bank for doorstep banking; partnership with BookMyForex for currency exchange (0.3% to 0.4% margin cut).

🌍 External Factors

Industry Trends

The fintech industry is shifting from high-volume/low-margin DMT services toward integrated digital financial services (Forex, Insurance, Banking). RNFI is positioning itself as a platform-based aggregator to capture higher margins.

Competitive Landscape

Competes with other fintech aggregators and specialized players like BookMyForex in the currency segment.

Competitive Moat

Sustainable moat built on a vast network of Sahayaks and deep API integrations with 112+ corporate/bank clients, creating high switching costs and network effects.

Macro Economic Sensitivity

Highly sensitive to Indian government regulations, tax regimes, and RBI monetary policies affecting fintech operations.

Consumer Behavior

Increasing demand for doorstep banking and digital-first forex solutions among individuals and corporates.

Geopolitical Risks

Primarily domestic regulatory risks; trade barriers are not a significant factor for the current service model.

⚖️ Regulatory & Governance

Industry Regulations

Operations governed by RBI (for DMT and Forex AD-II), IRDAI (for ReliAssure insurance broking), and SEBI (for listing compliance).

Taxation Policy Impact

Compliant with revised SEBI (LODR) Regulations, 2015; specific tax rate % not disclosed.

Legal Contingencies

No material significant related party transactions or instances of non-compliance resulting in disciplinary action by SEBI or Stock Exchanges were reported.